Market Concerns Spike as Upbeat Data Challenges Fed's Inflation Stance

U.S. stocks dipped after strong economic data fueled inflation fears, potentially slowing the Federal Reserve's policy easing. Rising job openings and services sector activity prompted concerns of prolonged inflation, raising benchmark Treasury yields. Tech stocks fell, and traders anticipated delayed Fed interest rate changes.

U.S. stocks suffered losses on Tuesday, with robust economic indicators stoking inflation concerns that could hamper the Federal Reserve's monetary easing pace. The Labor Department's report indicated a surprising increase in job openings for November, heightening worries over economic overheating.

The situation has prompted fears of prolonged inflationary pressure. Benchmark 10-year Treasury yields reached their highest in eight months at 4.677%, signaling economic strength. Commentary from financial experts suggests these indicators potentially weigh on stock performance, expecting the Fed's interest rate cuts to be pushed further into 2025.

Technology stocks, including Nvidia, took a hit as a result of higher yields. As the week progresses, investors turn their attention to non-farm payroll data and Fed meeting insights. Meanwhile, upcoming earnings reports from big banks add to market anxieties, alongside geopolitical concerns over tariff policies.

(With inputs from agencies.)